25-Which of the following is the BEST indicator of the economic well-being of the average citizen?

A.

CPI

B.

GDP per capita

C.

Purchasing power parity

D.

Nominal GDP

E.

Real GDP

The correct answer would be A, CPI.

Explanation:

CPI stands for Consumer Price Index. Consumer price index is the aggregate of the indicators that determine the overall condition of the common citizen. There are indicators through which we can analyze the situation of a citizen in a country, like the prices of petroleum, prices of gasoline, prices of transportation, prices of food items, prices of medical care, etc. When the prices of such items are high, then it is assessed that the living of citizens is costly. Such indicators combine to form an index. An index consists of indicators like Prices of Transportation, Prices of Food Items, Prices of Medical Care, etc, is called as Consumer Price Index, which determines the living cost of an average citizen in a country.

The answer is D, norminal GDP